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“I never imagined homeownership but as home prices continued to drop, my dream of buying a home began to come alive. Gretchen had more patience than anyone I’ve known and worked diligently to find a place that would work for us. I never would have gotten through this without her. She’s the absolute best!” (read more)
K & A Eaton
West Hawaii Real Estate Update
July, 2010: Volume 7, Issue 7
Where do I start to share with you just how great Kona’s 2nd quarter of the year was? Sales are up again to 83, pending sales are still holding over the crucial threshold of 100 at 159, and available listings are down again to 837… a decrease every month this year… yahoo!
As a quarter we haven’t seen anything this good since ‘06 with final sales totaling 244 making the annual total for ’10 so far 420. Considering all of ‘09 saw only 510 sales, we are well on our way to a much better year since we are at 82% of that already.
Now it isn’t enough to just have strong sales to make to recovery, we need to see some price increases too. In checking residential pricing (houses and condos) under $1 million the average price for the 1st quarter was $326,000 the lowest of this downturn. When I check it for the 2nd quarter it is $348,000. Now don’t get too excited since it is the 2nd lowest price and just a few sales can greatly influence it but it is definitely a step in the right direction for sellers.
As for buyers, this might be your ‘nudge’ to get off the fence before we see some substantial gains in this area.
Luxury Real Estate
Sales as a percentage of the available market are up again in luxury after falling off of some terrific highs earlier this year. Both Kona and Kohala saw just over 4% of their markets sell in June… almost double what had been the new ‘normal’ during the downturn. As a comparison the general market in this new ’normal’ had been selling just 4% and it is now up to 8%, so both are still holding strong. This number is a combination of inventory and sales so it is a great guide to understanding the ‘bigger’ look at the market.
Kona recorded 8 sales in June, with the highest being $5.4 million at Hualalai, but that was a $1 million reduction off the asking price! Year-to-date luxury sales represent 12% of the whole market in Kona.
Kona pending sales fell dramatically to only 6 in June, we haven’t seen single digits since last year but it is summer and that is typically a slower time for us, we will have to see if this is a new trend or just a blip in the very strong pending sales we had been seeing.
Luxury inventory in Kona dropped again for the 7th month and now represents 23% of the whole market.
Kohala luxury inventory is 27% of their market but sales were only 13% in June with 6. Luxury sales for the 2nd quarter represent 11% of their 109 quarter total. Pending sales are at 6 but single digits are common out here so they seem to be holding steady.
June was very good to a lot of areas with the home buyer credit expiring and Kohala was no exception, posting its highest one month total of the year… I had to go back to ‘07 to find another over the 45 it had. As for the halfway mark in the year, sales are up 32% over ‘09 and out of the 188 annual total 97 of them were for all cash or a jaw dropping 52%.
Pending sales after having two very high months, right at and just over 100, fell to just below it this month with 99 but that is still above the 50-70 range this area typically holds. So that means we should still see strong sales in July too.
Inventory dropped a few this month to a total of 543, not great but given that this area has the largest percentage on the island of strictly vacation properties, the hardest hit market in our downturn, I would say they are holding their own and making good progress.
Notes From Gretchen
We’ve moved! Seems a few of you are still trying to find us… call if you need more info.
As a tip for you fellow jazz lovers, Casablanca performs live at Basil’s once a month and it’s always packed. Check out their website for dates and come join the fun! View the Casablanca website.
On another musical note… my brother, Craig A. Meyer, will be in Hawaii doing his Almost Elton John tribute show in August and it always brings the house down so don’t miss it! He played Vegas in May with two sold out shows at the Suncoast Casino. There are several shows to choose from; his full concert in Kona is August 13th, View concert info here, or attend the annual fundraiser for the Aloha Theatre where he is a featured guest artist on August 7th, view info here; for Hilo on August 14th view Hilo concert info here and for the Honolulu show on August 6th at the Pipeline Café visit the Pipeline Café website.
As Seen in the News
Gretchen L. Lambeth
Hawaiian Isle Real Estate, LLC
Office (808) 329-5667
#1 Residential Resale Transactions from Keauhou to Hawi in 2007 & 2008!
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